Determining Revenue Requirements, Allocating Costs, and Designing Rates – Pipeline Perspective

Determining Revenue Requirements, Allocating Costs, and Designing Rates – Pipeline Perspective

This course is part of the ratemaking track and is intended for anyone needing or wanting a more thorough understanding of the ratemaking process natural gas companies follow to set rates charged to customers. Topics covered include why pipeline and LDC perspectives differ, pipeline regulation background, rate design goals, typical rate case timetables and the ratemaking process: cost of service, fictionalization, classification, allocation, and rate design. As a result of taking this course, the student should learn the following.

  • Similarities and differences of interstate pipelines and local distribution companies that impact the ratemaking process
  • The interstate pipeline regulatory framework, commission and ratemaking process
  • Various ratemaking methodologies